Reporting of Personal Injury Settlements in Florida
A personal injury settlement is a financial agreement between the victim and the party responsible for the injury. Settlements are usually reached out of court, but they can also be reached after a trial or a lawsuit. The parties involved in the settlement will agree on what type and how much compensation should be provided to the victim.
If you are a resident of Florida and your injury was caused by another person’s negligence, you are eligible to receive a personal injury settlement. You may wonder if Florida requires reporting the settlement for tax purposes after you receive one. Usually, you do not have to report your personal injury settlement – however, if you previously deducted medical expenses, it might be a different story.
Protecting Your Legal Rights During the Settlement Process
The personal injury settlement process is complex and requires a lot of time and patience. It can take up to a year or more to get the compensation you deserve, which is why we recommend hiring an attorney who can help you every step of the way. It’s essential that your legal rights are protected throughout the process.
Personal injury attorneys specialize in this type of law, including the ones at our firm. If you or a loved one were injured by someone else’s negligence, recklessness, or carelessness, we can help you fight for justice. At the Law Offices of Wolf & Pravato in Florida, our team is here to answer your questions, explain your options, and work to secure the best settlement possible.
What Types of Compensation Are Provided in Personal Injury Settlements?
Personal injury settlements are determined by the type and severity of the injury. The settlement amount is usually negotiated between the injured party and the at-fault party’s insurance company. It can be affected by many factors, including whether or not there was a death or permanent disability and economic factors like lost wages and medical expenses.
Compensation in a personal injury settlement may also include:
- Pain and Suffering
- Mental Anguish
- Loss of Consortium
- Future Medical Expenses
- Loss of Earning Capacity
Who Pays the Personal Injury Settlement?
In the unfortunate event that you are injured due to the negligent or intentional act of someone else, you may be entitled to compensation for your damages. Settlements are often reached to avoid lengthy and costly litigation at trial. A settlement can be reached by agreement between you and the defendant (aided by your Fort Lauderdale personal injury lawyer) through negotiations, or it can be mandated by the court.
In some instances, the defendant may want to settle the claim but does not have any insurance coverage or has insufficient coverage to pay for all your damages. In these situations, your lawyer can advise you if it would be best to let the matter proceed in court, since the court can attach the defendant’s property (home, vehicles, etc.) if they cannot pay.
Are Personal Injury Settlements Taxable?
Personal injury settlements are usually not taxable, which means you are not required to report them. However, if you previously deducted medical expenses or other costs related to your injury and then receive a personal injury settlement, you may be required to report the deductions as income – yet another reason to have an attorney familiar with personal injury law in your corner.
The Law Offices of Wolf & Pravato Can Help With Your Personal Injury Settlement
Fighting for your own personal injury settlement is a tremendous challenge. Not only does the process take a long time, but it’s not an easy process to go through – especially without an advocate at your side. Not having a legal background can also leave you with far less compensation than you deserve.
If your loved one died from their injuries, you may want to pursue a wrongful death settlement. At the Law Offices of Wolf & Pravato, we have been helping victims of personal injury and wrongful death for many years. Partnering with a Florida personal injury lawyer from our team helps ensure that your rights and interests are protected every step of the way. We can also guide you through any complications that arise during your case, saving you from any mishaps or confusion.
Our Fort Myers personal injury attorneys are deeply knowledgeable about personal injury law, including Florida’s requirements for reporting personal injury settlements. We are ready to help you reach a fair settlement or win your case in litigation. We can help you address any tax issues properly as well. To get started, contact us today at (954) 633-8270 for your free consultation.